The Fed Cannot Cure Inflation by Itself , Wall Street Journal June 28 2022 This is the original version, before WSJ edits. They made it shorter, but I think this version is better.  The Fed cannot cure this inflation alone. Relyi…

This is an essay, prepared for the CATO 39th annual monetary policy conference.  It will appear in a CATO book edited by Jim Dorn. This is a longer and more academic piece underlying " The ghost of Christmas inflation. "…

Whew. The penultimate draft of The Fiscal Theory of the Price Level  is now done, and in the hands of the copy-editors at Princeton. There is still time to send me typos, thinkos, wrong equations, excessive repetition and more!

The book isn't out yet, but I can't help myself... A revised draft of Chapter 5, fiscal theory in sticky price models is up on my website here . Giving talks over the last year and writing some subsequent essays, I see cl…

An email correspondent sent the above graph. The title is [Federal Reserve] Liabilities and Capital: Liabilities: Earnings Remittances Due to the U.S. Treasury. The Treasury pays the Fed interest on the Fed's asset holdings.…

In working on a revision to fiscal theory of the price level chapter 5 on sticky price models, and a revision of " Expectations and the neutrality of interest rates" I came up with this fun impulse-response function. I…

Source here .  Inflation seems to be waning. The conventional change from a year ago:  The month to month changes now suddenly more popular on the way down than it was on the way up:  I generally don't make predictions -- u…

The Fiscal Theory of the Price Level is now available from Princeton University Press . The official release date is Jan 17, but both hard cover and ebook are available sooner from Princeton. And for a limited time, 30% off! The…

Our great experiment in monetary economics continues.  The news of the moment is that inflation might--might--be peaking. I just present the CPI to make the point, but there seems to be a lot of news suggesting that inflation is…

Now that 30 days have passed, I can post the full text of "Nobody Knows How Interest Rates Affect Inflation" in the Wall Street Journal   August 25. A previous post has a summary with pretty pictures.  *** A grand econ…

(at Project Syndicate ) The Liz Truss Tragedy The former British prime minister’s downfall holds important lessons for growth-minded policymakers in the United States, Europe, and elsewhere. While her diagnosis of the country’s e…